Willis buildings sold to SMOC

Wednesday

Feb 20, 2013 at 6:00 AMFeb 20, 2013 at 6:38 AM

By Thomas Caywood TELEGRAM & GAZETTE STAFF

WORCESTER – The unraveling of one of the city's largest social service agencies, under mysterious circumstances, continued last week with a $2.5 million bundled sale of the now-defunct Henry Lee Willis Community Center's eight buildings in the city to the Southern Middlesex Opportunity Council of Framingham, according to real estate records.

The bulk of the sale price, $2.2 million, involves SMOC assuming two outstanding mortgages on the Willis Center's portfolio of nine buildings, including one in Hudson, according to a deed filed late last week at the Worcester Registry of Deeds.

In January, the state abruptly terminated about $11 million a year in social service contracts with the Willis Center, effectively forcing closure of the 30-year-old Worcester organization with no public explanation. Under fire from some city officials and community advocates about the lack of information concerning such drastic action, state officials have since said only that they had “serious concerns” about the financial management of the Willis Center. They have referred their suspicions to an unspecified law enforcement agency.

The state approached SMOC in December to take over some of the contracts previously held by the Willis Center and steered others to the Central Massachusetts Housing Alliance of Worcester and Advocates Inc. of Framingham.

SMOC had been leasing the Willis Center's buildings since Feb. 11 when it took over the state contracts.

James T. Cuddy, SMOC's executive director, said the former Willis Center buildings had to be sold as a package because the center had two blanket mortgages covering its entire real estate portfolio, not separate mortgages for each building. Mr. Cuddy said SMOC will in turn sell or lease the buildings it is not using to the agencies taking over those programs, Central Massachusetts Housing Alliance and Advocates Inc.

The terms of the sale were approved by the Willis Center's board of directors, he said.

“We've worked hard at making this transaction happen,” Mr. Cuddy said. “We're going to lease the other buildings as soon as the dust settles and then transfer ownership to Central Mass Alliance and Advocates.”

Mr. Cuddy said he had no idea why the state Executive Office of Health and Human Services terminated its contracts with the Willis Center.

“Frankly, I was stunned. I had never heard of this happening ever before,” said Mr. Cuddy, who noted that it was well-known the Willis Center had been struggling with operating losses for years.

The Worcester buildings involved in the initial sale from the Willis Center to SMOC are located at: 21 Catharine St., 25 Catharine St., 141 Providence St., 6 Wyman St., 54 Queen St., 21 Ives St., 15 Northampton St. and 7-9 Woodland St., according to the deed. The only building in the sale outside the city is 53 Church St. in Hudson.

Advocates Inc. has taken over residential substance abuse programs at the Channing House at 21 Catharine St. and the Linda Faye Griffin House at 15 Northampton St. The agency is leasing the properties from SMOC and intends to buy them now that initial sale of the bundled real estate portfolio is complete, an Advocates official said.